Oil prices hit ‘highest levels’ since 2015

Related News

Oil prices hit their highest levels early on Monday as markets tightened, while Saudi Arabia’s crown prince cemented his power over the weekend through an anti-corruption crackdown that included high profile arrests.

Brent futures, the international benchmark for oil prices, hit $62.44 per barrel early on Monday, their highest level for years now.

U.S. West Texas Intermediate (WTI) crude hit $56.00 per barrel in early trading, also the highest for many months now.

The arrest includes prominent business billionaire, Alwaleed bin Talal, and the head of the National Guard, Prince Miteb bin Abdullah.

“This consolidates the reforming process underway, part of which is a desire to drive the price of oil higher,” said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

Bin Salman’s reforms include a plan to list parts of giant state-owned oil company Saudi Aramco next year.

Meanwhile, a higher oil price is seen as beneficial for the market capitalisation of the future listed company.

In oil fundamentals, traders said that there were ongoing signs of tightening market conditions.

U.S. energy companies cut eight oil rigs last week, to 729, in the biggest reduction since May 2016.

The decline in U.S. drilling activity comes as the Organisation of the Petroleum-Exporting-Countries-(OPEC) and non-OPEC group led by Russia have pledged to hold back about 1.8 million barrels per day.

The pact to withhold supplies runs to March 2018, but there is growing consensus to extend the deal.

All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.